Could anything be better than Krispy Kreme coming to McDonalds! Yes! The new HMDA data is here! (More of a more serious note below.) Whether donuts or mortgages, a company can’t manufacture them without planning. Searching for one perfect process for your lending operation? It doesn’t exist. In STRATMOR Group’s March Insights Report, Principals Jennifer Smith and Jennifer Fortier debunk the myth that there can be only one right way to run all the processes within your organization, discussing the benefits of regular mortgage process reviews and emphasize the importance of thoughtful planning, execution, and ongoing support to ensure successful and sustainable changes in processes when needed. Of course planning involves numbers, and with many companies gutting their accounting and analysis departments, data analysis and measuring performance is now increasingly outsourced to companies like Gallus Insights. (Found here, this week’s podcasts are sponsored by Stavvy. Stavvy offers a flexible and fully customizable loss mitigation solution. Servicers can easily adapt to regulatory updates and market conditions, providing a seamless, customer-centric digital experience. Today’s has segments from yesterday's Mortgages With Millennials show featuring Nestment's Niles Lichtenstein and Bilt Rewards Jonathan Lawless discussing co-buying.)

Lender and Broker Services, Products, and Software

“Truv is now a conditionally authorized report supplier for mortgage lenders using Fannie Mae's Desktop Underwriter (DU®) validation service. With Truv's support for D1C, lenders can lower costs by up to 80 percent, reduce risk of fraud and buybacks by leveraging real-time data directly from the source, and accelerate growth by increasing pull-through rates and closing loans faster. Contact our team for a demo today to start saving. Get Started!”

Forta Solutions new Agility Platform has been awarded the Innovations Award by Progress In Lending. This is not just a testament to its technological prowess, but also a validation of the industry’s dire need for innovation. By leveraging cutting-edge technology and advanced analytics, Agility addresses the pressing needs of the warehouse lending industry. With solutions like Agility leading the way, warehouse lenders have the opportunity to embrace change, manage their risk, redefine their strategies, and chart a course towards a brighter and more prosperous future.

“Find buyers before agents with Stairs Financial! In light of the turmoil facing the real estate brokerage business, you can’t depend on agent referral networks alone to meet homebuyers. Stairs Financial is the leading mortgage marketplace focused on 1st-time homebuyers, we connect you with future clients for life, motivated buyers ready to dive into homeownership. Our buyers choose from a range of lenders and loan options, often with down payment assistance, and home buyer incentives, like CalHFA Dream for all, to help expand their budgets and improve close rates–and their loans are often CRA-eligible. Lenders set program guidelines and we integrate seamlessly with your PPE and CRM. Fill your pipelines with empowered borrower leads with the intent and finances to purchase a home. We are licensed in 41 states and actively expanding the platform to new areas. Please contact Mike Romano about partnership options and help your LOs thrive.”

Let the Data Slicing and Dicing Commence!

The new HMDA data is here! The new HMDA data is here! Warning: large data files ahead.

The Home Mortgage Disclosure Act (HMDA) Modified Loan Application Register (LAR) data for 2023 are now available on the Federal Financial Institutions Examination Council's (FFIEC) HMDA Platform for approximately 5,089 HMDA filers. The published data contains loan-level information filed by financial institutions and modified to protect consumer privacy.

“To increase public accessibility, the annual loan-level LAR data for each HMDA filer are now available online. Previously, users could obtain LAR data only by making requests to specific institutions for their annual data. To allow for easier public access to all LAR data, the Consumer Financial Protection Bureau's 2015 HMDA rule made the data for each HMDA filer available electronically on the FFIEC's HMDA Platform. In addition to institution-specific modified LAR files, users can download one combined file that contains all institutions' modified LAR data.

“Later this year, the 2023 HMDA data will be available in other forms to provide users insights into the data. These will include nationwide loan-level datasets with all publicly available data for all HMDA reporters; aggregate and disclosure reports with summary information by geography and lender; and access to the 2023 data through the HMDA Data Browser to allow users to create custom datasets, reports, and data maps. The CFPB will later also publish a Data Point article highlighting key trends in the annual data.

“HMDA users may find the CFPB's Beginner's Guide to Accessing and Using HMDA Data useful for background on HMDA and tech tips for understanding and analyzing the data.

“The 2023 HMDA Loan Application Register data can be found on the FFIEC's HMDA Platform: https://ffiec.cfpb.gov/data-publication/modified-lar.”

STRATMOR on Loan Manufacturing

Searching for one perfect process for your lending operation? It doesn’t exist. In STRATMOR Group’s March Insights Report, Principals Jennifer Smith and Jennifer Fortier debunk the myth that there can be only one right way to run all the processes within your organization. The Jennifers discuss the benefits of regular mortgage process reviews and emphasize the importance of thoughtful planning, execution, and ongoing support to ensure successful and sustainable changes in processes when needed. They also identify potential challenges that can derail sustainment of new processes and provide tips on how mortgage lenders can overcome them. To learn more about the importance of continued process evaluation and improvement and what it takes to be successful, check out STRATMOR’s March InFocus article, “On This Episode of ‘Between Two Jennifers’, Parrying the Pitfalls of Process Improvement.”

TPO and Non-Agency News

The current STRATMOR blog is titled, “Wholesale Channel Overview and Outlook.”

Click n’ Close, a multi-state mortgage lender serving consumers and mortgage originators through its wholesale and correspondent channels, announced its latest mortgage product, One-Time Close (OTC) loan programs for government-insured mortgage products. This product is designed to aid homebuyers in rural America with down payment assistance, with availability in select markets. Click n’ Close’s OTC program offers 100 percent loan-to-value (LTV) financing covering land, construction and closing costs, with no down payment or minimum investment required and the ability to finance the 1 percent USDA Guarantee Fee up to 101 percent LTV. Other product features include flexible debt-to-income ratios; eligibility for credit scores of 640 and above; no prepayment penalties; first-time homebuyer eligibility; absence of required reserves; seller/builder concessions up to 6 percent; utilization of eligible gifts for closing costs; and contingency account financing up to 10 percent.

Unified Reliance Wholesale has a new product offering, DPA Direct by URW. This 100 percent financing option pairs a primary FHA loan with down payment assistance in the form of a second lien. This means more homebuyers can take advantage of the benefits of an FHA loan without having to come up with a 3.5 percent down payment. And better yet, this program is available in most states*, unlike some location-specific assistance programs.

Citi Correspondent Lending Bulletin 2024-03 includes credit policy updates on Accessory Dwelling Units (ADU) Freddie Mac transactions, social security non-taxable income, military owner occupancy. Depreciating markets monthly list updates and clarifications on 529 Savings Plan, recurring debt – student loans, unacceptable collateral types update, community lending: CRA/full doc process clarification, child support & alimony/separate maintenance income, and housing payment history/verification - HomeRun & Agency transactions.

A&D Mortgage announced significant updates to its Prime Jumbo loan program, designed to increase accessibility and provide more flexible options for homebuyers and those looking to refinance. Effective immediately, these enhancements include expanded Debt-to-Income (DTI) ratios, increased maximum Loan-to-Value (LTV) ratios, and higher loan amounts for both primary residences and second homes.

100 percent Gift Loans allowed for down payment and closing costs is available from Quontic Bank Wholesale Mortgage.

To add to its diverse non-QM lending offerings, Carrington Mortgage Services, introduced a Closed-End Fixed-Rate Second Lien product for its wholesale and correspondent lending customers. Built for self-employed borrowers and real estate investors who can qualify using 12 or 24 months of bank statements, as well as wage earners that can provide traditional income documentation. These loans enable borrowers to tap into the equity of their properties while retaining their first mortgage. For homeowners looking to preserve their low interest rate first mortgage, a second mortgage is a great option for paying off credit card debt, funding a home renovation or taking cash out for other needs.

Capital Markets

With Friday’s PCE deflator data release being the focal point of this week (even as it comes on a day that markets are closed for the Good Friday holiday), things have gotten off to a quiet start.

We learned yesterday that home prices fell 0.1 percent in January, the first decrease since August 2022, according to the FHFA House Price Index. On a year-over-year basis, home prices rose 6.3 percent, on track with the historical average and a data point which was echoed by the Case-Shiller Home Price Index. Home price increases are likely to moderate as Americans gradually get used to higher rates and more existing listings come to market. And home sales are expected to pick up on a percentage basis amid strengthening turnover seasonals as the traditional spring home buying season gets underway.

Yesterday came news that durable goods orders rose 1.4 percent in February, slightly better than expected after falling a revised 6.9 percent in January. The key takeaway from the report is that business spending rebounded after a poor January as non-defense capital goods orders increased 4.4 percent.

Today’s economic calendar kicked off with mortgage applications decreasing 0.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Later today brings remarks from Fed Governor Waller and Treasury auctions of $60 billion 4-month bills, $28 billion reopened 2-year FRNs, and $43 billion 7-year notes. Recall that yesterday witnessed a strong $67 billion 5-year note auction, which followed Monday's weak 2-year note sale. We begin the day with Agency MBS prices roughly unchanged from late Tuesday (and all week), the 10-year yielding 4.22 after closing yesterday at 4.23 percent, and the 2-year at 4.58.

Jobs

“Loralynne Ball Appointed as Vice President of Strategic Partnerships at Top Flite Financial! Top Flite Financial, Inc. proudly welcomes Loralynne Ball as our new VP of Strategic Partnerships. With over 37 years of experience in the mortgage industry, she brings unparalleled leadership skills and an ability to forge lasting partnerships that will enhance our market presence significantly. Loralynne's innovative strategies and deep industry knowledge have underpinned her successful career, positioning her as a key player in our growth. She will spearhead initiatives to develop talent and build strategic relationships, ensuring our continued industry success. CEO Timothy Baise acclaims Loralynne's proven track record and is confident in her capacity to elevate our partnership strategies. Loralynne is eager to apply her vast experience toward our success, emphasizing the importance of solid partnerships for growth. Please help us celebrate Loralynne's appointment as we look forward to a prosperous future with her on our team. For media inquiries, please contact Michelle Locke.”

“Chrissi Rhea, CEO & Co-Founder and Chuck Tonkin, President & Co-Founder of Mortgage Investors Group (MIG), are delighted to welcome Anna Beltran as MIG's new President. This key addition to MIG’s leadership is aimed at reinforcing our commitment to innovation and excellence. With a remarkable journey of over 30 years in the mortgage industry, Anna is equipped with a vast array of skills and a noteworthy track record, poised to significantly contribute to MIG’s growth and operational excellence. Rhea expressed her enthusiasm, stating, ‘Anna’s arrival marks a milestone in our continuous journey towards excellence and innovation in the mortgage sector. Her extensive experience, coupled with her strategic vision for growth and customer service, perfectly aligns with our core values and ambitions. We are confident that Anna will play a crucial role in enhancing our service delivery and operational efficiency, setting new benchmarks for success.’ Please join MIG in welcoming Anna to the team and connect with her on LinkedIn.”

SecurityNational Mortgage Company Is on a roll! SecurityNational Mortgage Company is pleased to announce Joe Gregory as a new Regional Manager within the Summit Region. Joe joins SNMC with an amazing team and tenure in the Mortgage Industry and we are excited for his growth. SNMC has also appointed David Pettitt as Regional Manager for the Salt Lake Region. Dave's leadership and work ethic are sure to drive the region to continued success. Additionally, Chris Garza joins the SecurityNational Mortgage family as Regional Manager within the Midwest Region. Chris brings years of leadership background to SNMC. Joel Harward, SVP, commented "SecurityNational Mortgage continues to invest in elite leadership with the promotion of Dave Pettitt and the addition of Joe Gregory & Chris Garza. We look forward to the positive impact they will have on our growing sales teams here at SNMC." Need growth? Explore your options with SNMC.